Prada Acquires Versace in1.3 Billion Mega Deal

Prada​‍​‌‍​‍‌​‍​‌‍​‍‌ has officially wrapped up the purchase of Versace, the iconic luxury fashion house, in a deal worth around €1.3 billion ($1.51 billion). The Italian luxury group made the purchase after they had already signed a definitive agreement in April for the acquisition of Versace from the U.S.-based Capri Holdings.

This deal gained momentum after the cancellation of the sale of Capri to Tapestry due to antitrust issues, thereby giving Prada a strategic window to speed up the negotiations.

Key Highlights

• Prada completes €1.3 billion acquisition of Versace from Capri Holdings
• Lorenzo Bertelli set to become executive chairman post-integration
• Versace joins Prada and Miu Miu in a strengthened luxury brand portfolio

Lorenzo Bertelli, the son of Prada founders Miuccia Prada and Patrizio Bertelli, will probably take over the role of executive chairman at Versace once the integration is done. Bertelli, in his earlier talk, mentioned that Prada had been interested in Versace during the COVID period, which was a long time before Capri’s talks with Tapestry.

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Versace gets to be the part of the Prada Group that is not just the Miu Miu label but also a high-growth brand like Miu Miu. Indeed, the move is a tactical one on Prada’s part as the company is actively seeking to increase its scale, diversify its offerings, and fortify its competitive positioning in the global luxury market.

Changes at the top of Versace were made prior to the transition of ownership. Donatella Versace who had been the creative director for almost 30 years stepped down earlier this year and Dario Vitale, ex design director at Miu Miu, has taken over the position.